Airbag Manufacturer Takata Has Declared Bankruptcy
After a worldwide recall of its defective airbags, Takata has filed for bankruptcy amidst financial catastrophe
This has not been a good year for auto parts manufacturer Takata. The Japanese company has been at the centre of a worldwide recall affecting almost 16 million vehicles, issued due to certain airbags suffering from unusually high rates of failure. In many cases, these airbags were prone to exploding upon activation, resulting in a multitude of injuries, lawsuits, and at least 17 deaths.
Not surprisingly, the recalls and lawsuits have taken one hell of a toll on Takata’s finances. On Monday, Takata Corp. filed for bankruptcy protection in the face of class-action settlements from victims of its defective airbags. However, the bankruptcy is not expected to affect the settlement process.
The recent bankruptcy filing is the latest blow to Takata, which has been producing a wide variety of components since 1933. However, it’s believed the financial restructuring will help expedite the process of replacing faulty airbags. Even so, it’s thought that it will be years before all affected vehicles will be repaired.